Contrary to common belief, divorce proceedings only end a marriage and do not automatically address the financial obligations between you.
With regards to your financial arrangements, the Court will consider an application for financial settlement, whether in the form of ongoing maintenance, a lump sum, a Property Adjustment Order, all of the above or nothing at all.
If you then want to draw a line under the financial obligations you have to each other, you’ll need to ask the Court for a Clean Break Order; and our Divorce Solicitors can deal with this for you.
A Clean Break Order is a Court Order which declares that each person intends to waive their rights to make any sort of financial claim against their ex-spouse, including but not limited to those mentioned above, and will then retain what they individually own.
Financial Settlements and Clean Break Orders
When assessing financial settlements in divorce proceedings, the Court will consider the financial positions of both parties. If an agreement has not been reached, this will happen during formal proceedings, and the Court will request full disclosure of your financial earnings, savings, liabilities and expenditures.
The Courts will then decide how your finances should be divided, and will make a ruling based on what is fair and reasonable to each person. The Judge can then make a Clean Break Order, which will cut the financial ties between you, subject to any ongoing Maintenance Orders that have been made.
If, however, an agreement as to how to divide the matrimonial assets has been made, the divorcing couple will still need to disclose a summary of their financial positions. This will confirm to the Court that each person is aware of the rights they are waiving by entering into a clean break agreement.
If an agreement is reached which involves sharing any assets, for example a family home, the order should still include a Clean Break Order. This will prevent other claims being made, outside of the agreement that has been reached. This sort of order is typically reached by agreement once a Consent Order has been signed by both people.
It is important to have a clean break incorporated into all Financial Orders as this will ensure that that there is no prospect of a claim against you, even if circumstances change in the future and you find yourself in more favourable financial circumstances than you were at the time of the divorce.
For initial divorce legal advice call our Divorce Solicitors on 03306069626 or contact us online and we will call you.